Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2026

Fair values of assets measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 are shown in the following tables. Where applicable, the tables also indicate the fair value hierarchy of the valuation techniques utilized to determine those fair values. For some assets, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When this is the case, the asset is categorized based on the level of the most significant input to the fair value measurement. Assessments of the significance of a particular input to the fair value measurement require judgment and consideration of factors specific to the assets being valued. See Note 2 of the Notes to Consolidated Financial Statements in ProAssurance’s December 31, 2025 report on Form 10-K for a summary description of the valuation methodologies used regarding securities in the Level 2 and Level 3 categories, by security type.


	March 31, 2026
	Fair Value Measurements Using						Total
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	—	$	182,402	$	—	$	182,402
U.S. Government-sponsored enterprise obligations	—		8,846		—		8,846
State and municipal bonds	—		437,732		—		437,732
Corporate debt, multiple observable inputs	—		1,659,439		—		1,659,439
Corporate debt, limited observable inputs	—		—		83,883		83,883

Residential mortgage-backed securities	—		592,619		—		592,619
Agency commercial mortgage-backed securities	—		5,205		—		5,205
Other commercial mortgage-backed securities	—		217,245		—		217,245
Other asset-backed securities	—		450,496		5,346		455,842
Fixed maturities, trading	—		13,567		—		13,567
Equity investments
Financial	10,391		2,368		—		12,759
Utilities/Energy	1,525		—		—		1,525


Bond funds	80,695		—		—		80,695
All other	10,729		—		—		10,729
Short-term investments	240,407		69,103		—		309,510

Other assets	—		1,765		—		1,765
Total assets categorized within the fair value hierarchy	$	343,747	$	3,640,787	$	89,229	4,073,763
Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of:

Investment in unconsolidated subsidiaries							214,423
Total assets at fair value							$	4,288,186

Liabilities:
Other liabilities	$	2,124	$	286	$	—	$	2,410
Total liabilities categorized within the fair value hierarchy	$	2,124	$	286	$	—	$	2,410


	December 31, 2025
	Fair Value Measurements Using						Total
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	—	$	219,402	$	—	$	219,402
U.S. Government-sponsored enterprise obligations	—		9,852		—		9,852
State and municipal bonds	—		430,063		—		430,063
Corporate debt, multiple observable inputs	—		1,682,003		—		1,682,003
Corporate debt, limited observable inputs	—		—		79,511		79,511

Residential mortgage-backed securities	—		591,841		—		591,841
Agency commercial mortgage-backed securities	—		5,360		—		5,360
Other commercial mortgage-backed securities	—		208,121		—		208,121
Other asset-backed securities	—		456,130		3,504		459,634
Fixed maturities, trading	—		14,316		—		14,316
Equity investments
Financial	10,838		2,368		—		13,206
Utilities/Energy	1,103		—		—		1,103


Bond funds	81,137		—		—		81,137
All other	11,542		—		—		11,542
Short-term investments	222,354		63,275		—		285,629
Other investments	—		1,215		—		1,215
Other assets	390		399		—		789
Total assets categorized within the fair value hierarchy	$	327,364	$	3,684,345	$	83,015	4,094,724
Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of:

Investment in unconsolidated subsidiaries							214,455
Total assets at fair value							$	4,309,179

Liabilities:
Other liabilities	$	809	$	475	$	—	$	1,284
Total liabilities categorized within the fair value hierarchy	$	809	$	475	$	—	$	1,284

Schedule of Quantitative Information Regarding Level 3 Valuations

Quantitative Information Regarding Level 3 Valuations

Below is quantitative information regarding securities in the Level 3 category, by security type:

Fair Value at

($ in thousands)

March 31, 2026

December 31, 2025

Valuation Technique

Unobservable Input

Range
(Weighted Average)

Assets:

Corporate debt, limited observable inputs

$83,883

$79,511

Market Comparable
Securities

Comparability Adjustment

0% - 5% (2.5%)

Discounted Cash Flows

Comparability Adjustment

0% - 5% (2.5%)

Other asset-backed securities

$5,346

$3,504

Market Comparable
Securities

Comparability Adjustment

0% - 5% (2.5%)

Discounted Cash Flows

Comparability Adjustment

0% - 5% (2.5%)

Schedule of Fair Value Measurements - Level 3 Assets

The following tables present summary information regarding changes in the fair value of assets and liabilities measured using Level 3 inputs.


	March 31, 2026
	Level 3 Fair Value Measurements – Assets
(In thousands)	Corporate Debt		Asset-backed Securities		Total
Balance, December 31, 2025	$	79,511	$	3,504	$	83,015
Total gains (losses) realized and unrealized:
Included in earnings, as a part of:
Net investment income (loss)	27		—		27



Included in other comprehensive income (loss)	(448)		(62)		(510)
Purchases	6,331		—		6,331
Sales	(1,277)		—		(1,277)
Transfers in	1,658		1,904		3,562
Transfers out	(1,919)		—		(1,919)
Balance, March 31, 2026	$	83,883	$	5,346	$	89,229


	March 31, 2025
	Level 3 Fair Value Measurements – Assets
(In thousands)	Corporate Debt		Asset-backed Securities		Equity Investments		Other Investments		Total
Balance, December 31, 2024	$	81,062	$	3,774	$	5,506	$	500	$	90,842
Total gains (losses) realized and unrealized:
Included in earnings, as a part of:


Net investment gains (losses)	(1,727)		—		(689)		—		(2,416)

Included in other comprehensive income (loss)	417		(20)		—		—		397
Purchases	683		866		—		521		2,070
Sales	(2,538)		—		—		—		(2,538)
Transfers in	1,988		1,001		—		—		2,989
Transfers out	(10,938)		(1,048)		—		—		(11,986)
Balance, March 31, 2025	$	68,947	$	4,573	$	4,817	$	1,021	$	79,358
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets and liabilities held at period-end	$	—	$	—	$	(689)	$	—	$	(689)

Schedule of Investments in LLCs and Limited Partnerships

The amount of ProAssurance's unfunded contractual commitments related to these investments as of March 31, 2026 and fair values of these investments as of March 31, 2026 and December 31, 2025 were as follows:


	Unfunded Contractual Commitments	Fair Value
(In thousands)	March 31, 2026	March 31, 2026		December 31, 2025


Investment in unconsolidated subsidiaries:
Private debt funds(1)	$3,667	$	10,450	$	10,736


Non-public equity funds(2)	$33,105	89,443		92,164

Credit funds(3)	$70,485	54,914		54,373

Strategy focused funds(4)	$44,648	59,616		57,182

Total investments carried at NAV		$	214,423	$	214,455

Below is additional information regarding each of the investments listed in the table above as of March 31, 2026.

(1)This investment is comprised of one LP fund that is structured to provide interest distributions primarily through diversified portfolios of private debt instruments. The LP allows redemptions by special consent. Income and capital are to be periodically distributed at the discretion of the LP over an anticipated time frame that spans from three to eight years.

(2)This investment is comprised of interests in multiple unrelated LP funds, each structured to provide capital appreciation through diversified investments in private equity, which can include investments in buyout, venture capital, debt including senior, second lien and mezzanine, distressed debt, collateralized loan obligations and other private equity-oriented LPs. Two of the LPs allow redemption by terms set forth in the LP agreements; the others do not permit redemption. Income and capital are to be periodically distributed at the discretion of the LP over time frames that are anticipated to span up to ten years.

(3)This investment is comprised of multiple unrelated LP funds. Three funds seek to obtain superior risk-adjusted absolute returns through a diversified portfolio of debt securities, including bonds, loans and other asset-backed instruments. The remaining funds focus on private middle market company mezzanine and senior secured loans, opportunities across the credit spectrum, mortgage backed-loans, as well as various types of loan-backed investments. One fund allows redemptions at any quarter-end with prior notice requirements of 180 days, while two other funds allow for redemptions with consent of the General Partner. The remaining funds do not allow redemptions. For the funds that do not allow redemptions, income and capital are to be periodically distributed at the discretion of the LP over time frames throughout the remaining life of the funds.

(4)This investment is comprised of multiple unrelated LPs/LLCs funds. One fund is an LLC focused on investing in North American consumer products companies, comprised of equity and equity-related securities, as well as debt instruments. A second fund is focused on aircraft investments, along with components and assets related to aircraft. A third fund is an LLC focused on acquiring ownership stakes in insurance agencies. For all three funds, redemptions are not permitted. The remaining funds are real estate focused LPs, three of which allow for redemption with prior notice.

Schedule of Financial Instruments Not Measured at Fair Value

The following table provides the estimated fair value of the Company's financial instruments that, in accordance with GAAP for the type of investment, are measured using a methodology other than fair value. Fair values provided primarily fall within the Level 3 fair value category.


	March 31, 2026				December 31, 2025
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
BOLI	$	83,241	$	83,241	$	82,787	$	82,787
Other investments	$	7,207	$	7,207	$	7,185	$	7,185
Other assets	$	21,747	$	21,747	$	23,257	$	23,257
Financial liabilities:

Revolving Credit Agreement*	$	125,000	$	125,000	$	125,000	$	125,000
Term Loan*	$	112,500	$	112,500	$	114,063	$	114,063
Contribution Certificates	$	182,838	$	157,895	$	182,500	$	165,449

Other liabilities	$	20,915	$	20,915	$	22,469	$	22,469
* Carrying value excludes unamortized debt issuance costs.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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